NZ First conference: Winston Peters claims plagued Interislander ferries can work for 20 more years

New Zealand First leader Winston Peters believes the plagued Cook Strait Interislander ferries should be able to function for two more decades with sufficient maintenance.

That’s in contrast to KiwiRail’s assessments that have found the ferries can be safely operated up until 2029.

It comes amid apparent divisions within the coalition Government on the best replacement option for the ferries – with NZ First strongly advocating to retain the rail-enabled feature, while National didn’t appear as concerned in light of the extensive wharf upgrade cost estimates if the ferries needed rail access.

It’s understood it was unlikely NZ First would support a ferry replacement proposal without them being rail-enabled.

NZ First party members gathered at the NZ First conference in Hamilton would this weekend debate a policy proposal to support a “national railway system” that was connected with “at least two rail-enabled inter-island ferries between North and South Islands”.

Peters, asked about the remit in light of the Government’s impending decision on the future of the ferries, said he doubted KiwiRail’s assessment of the ferries’ working life.

“I don’t believe KiwiRail on that matter and when I was the minister, I got rid of all that myth-talking as well.

“When they finally leave the so-called life that you’re talking about, they’ll probably go off and work 20 more years somewhere else in the world.

“It comes down to upping the calibre and capability of maintenance.”

NZ First leader Winston Peters spoke about the ferries while at his party's conference in Hamilton. Photo / Mike Scott

Estimated annual maintenance costs to keep KiwiRail’s three ageing Interislander ferries running could almost double to $65 million by next year, according to official advice.

Peters wouldn’t speculate on when the Government should fund new ferries, directing questions to the minister responsible, Nicola Willis.

“I think you should go and ask the minister, I’m not in charge of it. Or you could perhaps ask the minister why I’m not in charge of it, somebody with a proven record.”

Willis’ office has been approached for comment.

In December, the Government decided to refuse a $1.47 billion funding request for KiwiRail’s new mega-ferries project with Willis claiming it would have blown out to more than $3b.

A 2021 detailed business case for the mega ferry project painted a challenging picture of the reality KiwiRail would be up against while attempting to keep its ships in shape for longer.

“The cost of maintaining the current fleet is becoming prohibitive,” the report said.

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It cost $33m to maintain the fleet in 2021/22. KiwiRail estimated the annual maintenance cost would almost double to $65m if the existing fleet was required to continue across 2025-2030

“The existing ferries will reach the end of their serviceable and economic lives by the mid-2020s and will become increasingly unreliable and costly to maintain,” the report said.

Last year, the Kaitaki lost power in Cook Strait with 864 people on board and started drifting towards the South Coast. This year, the Aratere ran aground with 47 people on board.

Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for NZME since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the NZ Herald in Auckland, covering Covid-19 and crime.